S & P downgraded Russia's sovereign rating to junk

International rating agency Standard & Poor's downgraded the sovereign rating of Russia to "speculative" level "BB +" from investment "BBB-".

It is reported by Censor.NET citing Gazeta.ru.

The forecast of the Agency is negative. In December last year, Fitch rating agency downgraded the credit rating of Russia to the value of BBB-, also with a negative outlook. Moody's downgraded the rating of Russian government bonds to the level of "Baa3".

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The agency explained its decision by "sharp decline" of the flexibility of monetary policy. At the same time Standard & Poor's reported a 50% chance of a downgrade over the next 90 days. Prior to this, long-term and short-term sovereign foreign currency ratings were at "BBB-/A-3" and at "BBB/A-2" in the national currency. In October 2014 the agency has affirmed Russia's sovereign rating on borrowings in foreign currency at "BBB-" with "negative" outlook.